Bakery chain and provider Delice de France has completed a management buyout from parent company Aryzta AG after accessing unsecured lending to support the split.
Bosses involved in the deal secured a fully unsecured “multimillion pound” eight-year loan from alternative SME credit specialist Caple.
The MBO was led by Delice de France managing director Thierry Cacaly and will enable the business to continue to deliver quality products, to innovate and to grow.
He said: “This bold move represents an outstanding milestone in the company’s 35-year history. We have a passionate, focused and well-seasoned leadership team who are dedicated to our customers by finding new ways to serve them as well as supporting our colleagues through continuous development.”
Caple is the UK’s first firm to offer access to unsecured lending based on the future cash flows of the business. It requires no collateral or personal guarantees as security.
Mr Cacaly said it would enable the company to become a “real independent force” in the food and beverage sector.
Loans originated through Caple can also sit alongside existing bank lending, meaning firms can access more funding than they would to be able to access from their bank alone.
As a result, Delice de France will retain its working capital facility with NatWest without the need for inter-creditor arrangements.
Dominic Buch, managing partner and co-founder of Caple, said: “Options for unsecured debt are limited in the UK. This creates a barrier to growth and ownership and may push businesses to needlessly issue equity in their business. Few businesses completing an MBO want to consider that option.
“Our deal demonstrates how unsecured lending can form part of a blended finance package and support ambitious businesses and management teams.”
Delice de France is the largest specialist manufacturer and distributor of premium frozen bakery products in the UK and operates a number of stores.